Reported Earlier, Alibaba Group Prices Private Offering Of $4.5B 0.50% Convertible Senior Notes Due 2031
Portfolio Pulse from Benzinga Newsdesk
Alibaba Group has priced a private offering of $4.5 billion in 0.50% convertible senior notes due 2031. The net proceeds will be used for share repurchases and funding capped call transactions.
May 24, 2024 | 5:46 am
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Alibaba Group has announced a $4.5 billion private offering of 0.50% convertible senior notes due 2031. The proceeds will be used for share repurchases and capped call transactions.
The issuance of convertible notes and the planned share repurchases are likely to positively impact Alibaba's stock price in the short term. The repurchase of shares can reduce the number of shares outstanding, potentially increasing the value of remaining shares. Additionally, the low interest rate on the notes indicates favorable borrowing conditions.
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